Indian Govt mulling steps to reduce gold import: FM

New Delhi: The Indian government is considering steps to reduce gold import by making it more expensive, Finance Minister P Chidambaram said on Wednesday.

"Demand for gold must be moderated… We may be left with no choice but to make it more expensive to import gold. The matter is under government consideration," he told reporters here.

Gold import is a major constituent of India's rising Current Account Deficit (CAD). The CAD, which represents the difference between exports and imports after considering cash remittances and payment, widened to a record high of 5.4 per cent of Gross Domestic Product (GDP), or USD 22.3 billion, in the July-September quarter.

In value terms, gold imports stood at USD 20.2 billion in the April-September period of the current fiscal, a decline of 30.3 per cent over the corresponding period a year ago.